[Bug]: UI gets stuck on "failed to retrieve files" even after recovering

[rbren]

Is there an existing issue for the same bug?

• [X] I have checked the existing issues.

Describe the bug and reproduction steps

If /list-files fails, the UI doesn't recover, even if a subsequent call is OK

My guess is we're not clearing some error variable from the React component state

OpenHands Installation

Docker command in README

OpenHands Version

No response

Operating System

None

Logs, Errors, Screenshots, and Additional Context

No response